SPAIN's Socialist government has approved the re-introduction of wealth
tax as part of its efforts to tackle its budget deficit.
Suspended in
2008, the government now aims to reintroduce a modified version of the tax on
wealth in 2011 and 2012, specifically targeting the country’s super-rich, in a
bid to generate much needed additional fiscal revenues in 2012 and
2013.
Under the proposed plans, the new levy would be imposed on net
wealth in excess of EUR700,000, affecting an estimated 160,000 of Spain’s
wealthiest individuals. Expected to yield around EUR1.08bn (USD1.48bn) a year
for the government, the threshold for the proposed levy is around seven times
the previous EUR120,000 2008 threshold to ensure that the middle class is
protected from the measure.
In accordance with its stability programme,
Spain aims to reduce its public deficit from around 9.2% of gross domestic
product in 2010, to 6% this year, 4% in 2012 and finally to 3% in
2013.
The Cabinet’s proposed new tax is due to be examined by Parliament
shortly.
|
